THE LEAP TO ERP (1/3)
The need of the change
For several decades and with the gradual rise of computer technology, many industries have optimized their resources through methods such as toyotism, and tools to apply these concepts, such as ERP. The furniture industry is no exception to the rule, although it took a little longer than other industries like the automotive industry to jump on the bandwagon. For several reasons: Because the furniture industry has many parameters and variables, and requires an efficient CAD/CAM to properly feed the ERP.
Moreover, this sector is halfway between traditional and industrial carpentry. Many actors have passed the other side over the last two decades, while others have chosen to continue with a traditional structure.
More than ever before, in the face of the competitive environment and the various economic crises that countries have been through recently, it is necessary to have optimized management to survive and aspire to evolve.
Shifting to a rationalized production system requires awareness and leads most of the time by choosing an appropriate IT solution and in accordance with the methodology of the company or the future methodology that will be adopted.
When switching to another ERP, or for a first implementation, it is important to take into account the big organizational change that this means.
Indeed, when one begins to evaluate this solution it is because it is necessary to distance oneself from what has been up to now, to detect the weaknesses and generally to make the conscious decision or not to opt for another system.
Conscious, when assuming that its current production system does not allow to cope with reality, manage orders nicely, for example, or that loses a lot of time or generates many errors with consequence of unnecessary costs. Either because there is an underlying problem in the organization, irrespective of the computer system already in place, or because there is a need for a tool to implement these protocols, the best way is to search a specific solution related to the furniture sector, to the detriment of a generic solution that will cost much more to adapt to the processes of the sector.
With a bespoke solution for the sector, specific for furniture and wood, we offer an interface designed to solve a large part of the daily tasks.
Of all the industries, furniture is one of the most delicate to deal with: the challenge of manufacturing products with a myriad of variables and with a relatively low final value in comparison is unique. We understand here the need to choose a very flexible tool to achieve this goal.
Ultimately, it is important to know that, rather than considering the acquisition of an ERP as a simple purchase of software, it is actually a very close collaboration between the manufacturer and the software provider. At Simsa, for example, we are aware of this, and that is why TeoWin ERP obeys these characteristics.
By making a diagnosis before the acquisition of the ERP, it is essential to analyze what is the real need, with a reflection to have on the 5, 10 or 15 years ahead, because this represents a long-term investment.
As we mentioned above, it is fundamental to rethink its organization. If, for example, until now the usual organization in the workshop consisted of using a certain number of papers to distribute the various tasks from the ordering department, following the integration of a TeoWin ERP, A fully integrated system that would make the complete cycle of furniture more fluid without losing its essence (we can still using papers if we are nostalgic): from its creation in technical office to delivery, through production, ordering 3D store or even the final customer from his home, choosing products from a web application. Everything from a single solution.
*PRACTICAL INFO: What is an ERP?
Enterprise Resource Planning (ERP), are information systems that integrate and manage most of the enterprises involved in production and distribution operations for goods or services.
ERP systems are comprehensive management systems for the enterprise. They are characterized by different modules that usually manage production, logistics, distribution, inventories, shipments, invoicing and accounting. However, planning for enterprise resources or ERP software can be used to control many activities such as sales, payments, production monitoring, inventory management, quality management and human resources.
The main objectives of ERP systems are:
• Optimization of processes in a company.
• Access to information.
• Ability to share information across all components of the organization.
• Elimination of unnecessary data and operations that increase flow.
The fundamental objective of the ERP is to provide customer support, rapid response times to their problems and efficient management information to enable timely decision making with a true and comprehensive view of the costs of exploitation.
For an ERP to be distinct from any other enterprise software, it must be modular, configurable and specialized:
• Modular. ERPs understand that a business is a set of departments that are interconnected by the information they share and is generated from its processes. An advantage of ERP, both economical and technical, is that the functionality is divided into modules that can be installed according to customer needs. Example: sales, materials, finance, inventory control, human resources, etc.
• Configurable. ERPs can be configured by custom programming. For example, to control inventory, it is possible that an enterprise needs to manage the batch partition, but that another company does not. The most advanced ERPs typically include fourth-generation programming tools for the rapid development of new processes.
• Specialized. A specialized ERP offers solutions in areas of great complexity and with a constantly evolving structure. These parties often constitute the real problem of companies, in addition to containing all other cross-cutting areas. Working with a specialized ERP is the logical step for companies that need real solutions to their day to day needs. A generic ERP offers only a small percentage of efficiency based on general responses that necessarily require functional extensions, with high cost.
A company that does not have an ERP system adapted to its needs will have many closed software applications, which cannot be customized, and are not optimized for the company. The technical design to realize prototypes or improve the product, customer follow-up from acceptance up to complete satisfaction, the correlation between the structure of products and materials in the real world with their representation in the software, modifications in engineering and examination products, and the improvement and need to develop alternative materials, etc. The advantage of having an ERP is that all this, and more, is integrated.
*Source: Extracts from Wikipedia Spanish version translated to English
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